APL APOLLO TUBES Share price

M/s Bihar Tubes Ltd. was originally incorporated on 24thFeb. 1986 as a Private Ltd. Company with Registrar ofcompanies Delhi and Haryana at New Delhi The Company wassubsequently converted into a Public Ltd. Company on 19thOct. 1993 and a fresh Certificate of Incorporation wasobtained from Registrar of Companies. The company wasoriginally promoted by Shri Sudesh Kumar Gupta and his wifeSmt Saroj Rani Gupta. In August 1993 their son Sri SanjayGupta also joined the Board as Director.The company had setup its existing unit originally for themanufacture of ERW Black Pipes only with an installedcapacity of 6000 MT/annum AT A-i 9 UPSIDO IndustrialArea Sikandrabad Distt. Bulandshahr with financialassistance from UPFC This unit started its operationw.e.f. October 1987 after a delay of around 6 months fromthe date of commissioning as envisaged by UPFC There washowever no cost overrun in the overall project cost due tosufficient provision of contingencies and also theprovision of only indigenous machines for the project.After achieving full utilisation of the installed capacitythe company subsequently expanded its ERW Black Pipemanufacturing capacity to 24000 MT/annum with furtherfinancial assistance from UPFC in 1989. This expansionscheme was commissioned within the stipulated cost and timeschedule After stabilizing its operations the companydiversified its operations by undertaking Galvanisingactivity also with financial assistance from The PradeshiyaIndustrial and Investment Corporation of U.P. Limited(PICUP). The galvanising plant was commissioned in March1994 as envisaged. The present installed capacity of theunit is to manufacture 24000 MT/annum of ERW Black Pipesand to galvanise 16000 MT/annum of Black Pipes.The capacity utilisation of the ERW Section has been lowbecause there was limited demand for ERW black pipes and italso involved low profit margins. This fact only has leadthe company to also put up the Galvanising plant whichcaters to the bigger segment of the market and also fetchesbetter profitability. In addition the company has also got`ISI'' specifications around two years back and since thattime it has been establishing its own brand. Afterinstallation of Galvanising plant and registration withDirectorate General of Supplies and Disposals (DGS & D) forGovt. Supplies the capacity utilisation turnover andprofitability of the company have improved considerably.the proposed expansion scheme is aimed at removing theimbalance in ERW section viz-viz Galvanising section and tofind Company''s working capital requirements from long termsources.